Besides the stock market tanking 777 points today (largest point drop ever) due to no agreement on the bailout plan - European governments announced a flurry of bank bailouts from Germany to Iceland before that even happened.
I fully expect the market to rebound a bit tomorrow - as i am sure that someone will come up with a comment about bringing up a new bailout plan that can be voted upon that will be approved... The government inevitably will get something through......right?
So - I think today's stock market tanking was a bit of an over-reaction...
Nevertheless - I think we are still headed down over time..
Prior to the rejection of the bailout - in Europe - the proposed rescue deals only heightened fears that the contagion from the U.S. credit crisis has much further to spread before the financial system recovers.
European shares fell heavily and money markets remained frozen with banks refusing to lend to each other for all but the shortest periods amid concern that a planned U.S. government $700 billion bailout package 'WOULD NOT BE ENOUGH" to stem the crisis.
A few hours later, the U.S. House defeated the rescue package by a vote of 228-205.
So - not sure how much more frozen up European Banks will become after the bill's defeat......
Companies in the US and Europe are having a hard time raising money via new loans.
Of course - I predicted all this about 3-4 years ago when Bernake started jacking rates over and over - thus killing housing - which is why I have various domain names related to
The Great Depression of 2009......(decided to get them earlier this year)
Perhaps someone will swap some gold to me in exchange for the domain names :-)
You may want to stockpile a bit of canned food in any case - before the dollar becomes worthless....
I'm actually taking up canning as a hobby - making pickles.... Unfortunately - my first batch turned out to be way too salty :-(
I'll get the hang of it .... esp if I have more free time on my hands if home buyer flow dries up....
_____________________________________________________________________
As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area. Unlike "buyer agents" - we are specialists, not generalists, and we are always 100% on the home buyer's side....
If you are thinking about buying / purchasing a home in the Chicago Illinois area, you should ensure that you have an agent that is on your side – looking out for your best interests. Feel free to visit the Buyer Broker Chicagoland web site for more information. Or call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us to schedule a complimentary initial consultation – where we can determine if we can take you as a client.
Comments (1)Subscribe to CommentsComment